MARKET WATCH BY DINA EL BEHIRY
February 2021 EGYPT'S 2020 DEVELOPMENTS IN REVIEW MARKET WATCH
EGYPT'S 2020 DEVELOPMENTS IN REVIEW
HOUSING SECTOR
BREA DOWN 2020 103,000 50,000 T P N e H u Residence for All Egyptians 33,300 Middle-Income Units 113,300 Alternative Housing for Slum Dwellers 5,300 Distinguished Units 416 Continue orking in Full wing EGP 23.46 bn Bedouin Settlements P T I 383 Nubian Housing Rehabilitation Projects
SINAI DEVELOPMENT PROJECTS DESALINATION PLANTS
T P FY 2020/21
T I L N P C T I e 19.23 bn arish 3 20,000 m Day e 349 mn
POTABLE WATER & SANITATION PROJECTS ROADS DEVELOPMENT
N P P N u S P N r S P 24 No. of Road Projects 43 42 148
C C
447,500 m Day 515,500 m Day T I 243.4 km Total Length e 5.1 bn T I T I e 5.4 bn e 6.6 bn e 3.1 bn Total Investments S M H u u C
3 February 2021 MARKET WATCH
Y-O-Y REAL ESTATE DEMAND INDEX OI
201 2020
2,802 2,464 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2,402 2,425 2,797 2,700 2,425 2,954 3,181 3,299 3,008 2,913 2,801 2,718 2,875 2,750 1,936 1,936 2,159 2,592 2,391 2,671 2,426 2,658 2,717 2,456 12% Average
M-o-M REAL ESTATE DEMAND INDEX OI
2,875 2,750 1,936 1,936 2,159 2,592 2,391 2,671 2,426 2,658 2,717 2,456
20-Jan 4% 20-Feb 30% 20-Mar 0% 20-Apr 12% 20-May 20% 20-Jun 8% 20-Jul 12% 20-Aug 9% 20-Sep 10% 20-Oct 2% 20-Nov 10% 20-Dec
Q-o-Q REAL ESTATE DEMAND INDEX DEADLINE FOR REAL ESTATE TAX OI RETURNS EXTENDED
O N
N end of arch 2021 2,872 2,718 2,662 2,597 2,456 T 2,981 2,587 2,813 2,801 2,717 rovide Consumers with ore ime to File ax returns 2,627 3,231 2,792 2,913 2,658 201 201 201 201 2020 reduce Overcrowding at Property Tax Offices 2,625 3,028 2,734 2,811 2,610 15% 10% 3% 7%
PUBLIC DEVELOPMENTS IN RENEWABLE ENERGY & ELECTRICITY SECTORS
N P T I 416 e 95.6 bn
CAIRO ASWAN ASSIUT RED SEA UPPER EGYPT 60 7.5 36 3.7 23 9.2 22 9.1 118 19
BORDER GOVERNORATES ALEXANDRIA BEHEIRA DAMIETTA 35 14.8 21 1.4 16 3.5 10 4.2
BENI SUEF OTHERS 9 1.6 34 33.4 N e P I e P BN
S a M F M P e MPe
4 February 2021 MARKET WATCH
OV DeVe O e rO eC I u er e y
DEVELOPMENT PROJECTS
Time Period Total Investments From 2014 to Date e 63 bn
HOUSING SECTOR ROAD PROJECTS
I e r L e 11.3 bn 931 km I e 13.2 bn POTABLE WATER & SANITATION N H u PROJECTS 130,892 I N P S P e 34.5 bn 271
N P u e P SLUMS DEVELOPMENT 1,654
I e 389 mn SERVICE PROJECTS
N a 94
I N S C 36,869 e 3.6 bn N H u 412
PRICES OF CONSTRUCTION REAL ESTATE & CONSTRUCTION MATERIALS STOCK MarKeTS IN e eS eCeMBer 2020 e P PerFOrMaNCe IN e YPT 2020 ONLINE MONTHLY SURVEY
To what extent did the Coronavirus second STEEL CRETAL PORTLAND COARSE r e C M BARS STEEL CEMENT SAND wave affect property sales?
11,600 12,000 750 75 1 799 1,261 YOY 11.5 YOY 14.3 YOY 6.3 YOY 7.1 2 775 1,205 62% H 0 801 1,262 34% SOLID CEMENT BRICKS BRICK HOLLOW CONCRETE L POINTS 0 822 1,286 1 000 0 20 12 1 000 3% N 1,100 4,930 1 843 1,350 YOY 0 YOY 2.4
S M H u u C e e e I r a
5 February 2021 NEW CITIES UPDATE MARKET WATCH
NEW CITIES UPDATE
PLOTS ALLOCATION
33 14 New Cities NO. OF ALLOCATED LANDS LOCATION
PLOTS BREA DOWN N a L a
ew Cairo th of October City ew October adat City badr City 7 124,540 m2 4 175,059 m2 4 47,170 m2 3 15,080 m2 2 2,598 m2
ew Obour ew Damietta ew borg el arab ew assiut 10th of ramadan City 2 8,278 m2 2 46,912 m2 2 2,636 m2 2 4,984 m2 1 19,668 m2
horouk City ew ohag ew ubarya ew beni uef 1 945 m2 1 64,750 m2 1 12,360 m2 1 24,612 m2
UPDATES ON CAPITAL RESIDENCE UPDATES ON NEW DAMIETTA'S HOUSING PROJECTS R3 District, New Administrative Capital (NAC) 358 (15 Buildings) LOCATION NO. OF HOUSING UNITS
24,130 (19 944 Apartments, 328 Villas & 157 Townhouses) Stick to Agreed Timelines & TOTAL NO. OF HOUSING UNITS No Delays PLAN
87% COMPLETION RATE a u
D1 & D8 Neighbourhoods Buildings: Complete AREAS TO BE DELIVERED Units: o be Delivered oon January 3 to July 5 DELIVERY DATE Utilities & Facilities Work: underway
S N u C a NuCa M H u u C N a
7 February 2021 MARKET WATCH
RESIDENCE FOR ALL EGYPTIANS' INITIATIVE
East Port Said, New Aswan, New October & October Gardens LOCATION
Provide Target Segments with Decent Low- & Middle-Income Earners Housing at Earliest TARGET SEGMENTS PLAN
UPDATES ON NEW MANSOURA'S ONGOING PROJECTS
INSPECTED PROJECTS New Mansoura Distinguished Housing JANNA Luxury Housing University Projects Project
Sakan Misr Housing Medical Center Several Schools Project
Commercial Markets Facilities Road Projects
Stick to Set Timetables While Taking All Precautionary Measures PLAN
JANNA LUXURY HOUSING PROJECT SAKAN MISR
4,728 (197 Buildings) 4,704 (196 Buildings) NO. OF IN-PROGRESS UNITS NO. OF COMPLETE UNITS
March 2021 6,504 (271 Buildings) DELIVERY DATE NO. OF COMPLETE UNITS
a u June 2021 DELIVERY DATE Service Center: 93 Complete Mansoura International University for Science & Technology: underway
PILOT OPERATION OF NEW WASTEWATER TREATMENT PLANT IN SOHAG (PHASE I)
450,000 15,000 m3/Day 35,000 m3/Day NO. OF BENEFICIARIES CAPACITY (PHASE I) CAPACITY OF OTHER PHASES
EGP 500 mn Work in Full Swing on Phases II & III; 80% Complete TOTAL INVESTMENTS STATUS
S M H u u C H N a S N M
8 February 2021 MARKET WATCH
UPDATES ON NEW ASWAN'S UPDATES ON NEW CAIRO'S HOUSING PROJECTS TOURIST STRIP DAR MISR (PHASE II) Overlooks Nile River LOCATION 376 1,625 (69 Buildings) TOTAL NO. OF NO. OF HOUSING UNITS RESIDENTIAL BUILDINGS READY FOR DELIVERY 6,000 m TOTAL LENGTH Start: January 2021 DELIVERY DATE 97% COMPLETION RATE
Next March JANNA DELIVERY DATE
365 1,512 (63 Buildings) 66 TOTAL NO. OF NO. OF HOUSING UNITS RESIDENTIAL BUILDINGS READY FOR DELIVERY NO. OF DELIVERED UNITS
Launch Residential 84 Start: January 2021 87 NO. OF UNDERWAY UNITS DELIVERY DATE Buildings Soon PLAN
65% COMPLETION RATE SAKAN MISR July 2021 DELIVERY DATE 148 2,256 (94 Buildings) TOTAL NO. OF NO. OF HOUSING UNITS RESIDENTIAL BUILDINGS READY FOR DELIVERY
OPEN THEATRE Start: February 2021 DELIVERY DATE Directly on New Aswan's Tourist Strip LOCATION UPDATES ON HOUSING UNITS FOR GOV'T EMPLOYEES 5.5 Acres TOTAL AREA Badr City 9,024 (376 Buildings) LOCATION NO. OF HOUSING UNITS 30% PLANNED FOR DELIVERY COMPLETION RATE Relocate 1st Batch of 91.5% Gov't Employees to 3,000 Spectators COMPLETION RATE CAPACITY NAC PLAN
S M H u u C NuCa
9 February 2021 PRIVATE REAL ESTATE PROJECTS UPDATE MARKET WATCH
PRIVATE REAL ESTATE PROJECTS UPDATE
NEW RESIDENTIAL PROJECTS GENOVA e r e
LOCATION AREA TOTAL INVESTMENTS LAUNCH DATE Sheikh Zayed, West Cairo 20 Acres EGP 3 bn January 2021
STATUS PLAN PAYMENT PLAN Architectural Plan Approved. Invest EGP 100 mn in Construction Up to 10 Yr Payment Terms. of Phase I. 10 Upfront, 5 Resale Profits & Work to Start Over 2021 Log EGP 1 bn in Contractual 25 Annual Rent Profit on Branded Sales in 2021. Residences.
SUPPLY VOLUME
T N r u 768 u a 126-220 m2
8,000 m2 Health & Leisure Club Running & Cycling Tracks Restaurants & Cafes ervices Banking Area Medical Center Commercial Mall
ALKARMA GATES a K
LOCATION TOTAL INVESTMENTS COMPLETION DATE AREA Sheikh Zayed, West Cairo 36 Acres EGP 1.8 bn 2024 (13.5% Built-Up Area)
SUPPLY VOLUME
T N r u 180
unit areas Standalone Villas: 295- 414 m2 Twin Houses: 235 m2 Townhouses: 203-206 m2
4,200 m2 Club House Sporting Clubs Commercial Malls Kids Areas ervices 4 Outdoor Parks Green Spaces Open Gym
Source: Developers’ Official Statements
11 February 2021 MARKET WATCH
KARMELL S O I C SO IC
LOCATION AREA STATUS New Zayed, West Cairo 240 Acres 1st Batch of Residential Units Sold Out on Launch Day
SUPPLY VOLUME F F F H
KAYAN (NEW PHASE) B
LOCATION AREA BUILT-UP AREA DELIVERY DATE Sheikh Zayed, West Cairo 100 Acres 200,000 m2 Start: 2022
SUPPLY VOLUME
T N r u 1,600 u a 60-180 m2
NEW COMMERICAL PROJECTS CAIRO EYE H T I C
LOCATION HEIGHT LAUNCH DATE DELIVERY DATE Overlooks Nile River, Zamalek 120 m January 2021 2022
PLAN TARGET Part of Egypt Vision 2030. Support Tourism, Attract More Foreign Investments & Boost Zamalek's Green Area to Stand as Africa's 1st Largest Wheel & World's 5th 7,000 m2 (Instead of 6,100 m2) Largest After London, Dubai, Las Vegas & Singapore
SUPPLY VOLUME 48 C C 6 8 C
Source: Developers’ Official Statements
12 February 2021 MARKET WATCH
NAMMA O a M Y S
LOCATION AREA TOTAL INVESTMENTS 6th of October City, West Cairo 8,000 m2 EGP 250 mn (Built-Up Area 15 000 m2)
SUPPLY VOLUME
3 S M C a C Shops Restaurants & Cafes`
Banks Clinics 3 Celebration Halls Motel
WORD-PLEX SO IC
LOCATION AREA STATUS The Portal Business Park, SODIC West 30,000 m2 SODIC & Mobica Agree to Bring New Office Concept for SMEs
SUPPLY VOLUME F F F F O S
LIFE MALL IC
LOCATION AREA TOTAL INVESTMENTS DELIVERY DATE STATUS New Cairo 4,800 m2 EGP 600 mn Q1 2021 IC Group Concludes 180 Deliveries & More in the Pipeline
SUPPLY VOLUME
2 S C 140 C u O 70
Source: Developers’ Official Statements
13 February 2021 MARKET WATCH
DORADO C L
LOCATION AREA TOTAL INVESTMENTS Downtown District, NAC 2,216 m2 EGP 200 mn
SUPPLY VOLUME
10-Story Medical, Commercial & Administrative Complex 174 Mixed-Use Properties
Unit Prices: Starting EGP 20 000/m2 Unit Areas: Minimum 24 m2
OIC (PHASE I) O I P
LOCATION AREA Completion Date Economic Zone, Ain Sokhna 10 mn m2 (Phase I 2 mn m2) April 2021
SUPPLY VOLUME
800 Factories Labor Capacity: 25 000 Workers
Restaurants & Cafes Pharmacies Medical Center Residential Units
Projects Underway CARREFOUR (NEW BRANCHES) M a F
Omar Effendi Partners With Majid Al Futtaim for New Branches at its Premises
Negotiations Led by Real Mark & Amaken Real Estate Investment Company NEWS
Develop 14 Omar Effendi Branches on Several Phases: Develop Omar Effendi Premises by Inaugurating New Carrefour Branches Evolve Workers Capabilities PLAN Provide High-Quality Product Develop Work Mechanism & Electronic Payment Plans
Source: Developers’ Official Statements
14 February 2021 MARKET WATCH
MOSTAKBAL CITY e M u
LOCATION AREA New Cairo 11,000 Acres
Ready to Receive Some Residents of Phase I in H1 2021 Construction & Infrastructure Work of Phase I: 90% Complete
NEWS Main Gate: Complete Cost of Gate Implementation: EGP 45 mn
Landscape Work: Underway for Delivery in March IBUSINESS PARK a
LOCATION No. of Buildings NAC 3 20-Story Towers
Arqa Meets With Consulting Firms, CAD & Sabbour to Discuss Final Details Before Execution
S C March 2021 NEWS
ICITY M
Mountain View & Huawei Technologies Join Forces to Develop Information Technology (IT) Infrastructure
NEWS Total Invesments: USD 1 mn+ (EGP 15.71 mn)
VIBE ZONE T
LOCATION UNIT AREAS NEWS 90 Avenue, New Cairo 95-310 2 Delivery of 100 Residential Units within Phase I, With 150 Others in the Pipeline
Source: Developers’ Official Statements
15 February 2021 MARKET WATCH
PARAGON B
LOCATION AREA TOTAL INVESTMENTS DELIVERY DATE NO. OF OFFICE SPACES NAC 4,300 2 EGP 500 mn Start: 2022 205 B u a 23,000 2 (7 Floors)
Builderia Contracts With Schneider Electric, Space Consultants & Asass Construction
Target: S u P I P C H S S NEWS M a L 55% P
Concrete Structure Work: O
FIFTH SQUARE a M I
LOCATION AREA TOTAL INVESTMENTS LAUNCH DATE NO. OF RESIDENTIAL UNITS New Cairo 158 a EGP 23.5 bn 2017 576 42 B
Al Marasem Starts Delivery of Phase I as of November 15
a M M e u a e B NEWS
FESTIVAL AVENUE M a F
LOCATION AREA TOTAL INVESTMENTS NO. OF ADDITIONAL STORES Cairo Festival City (CFC) Mall's 29,249 2 EGP 2 bn+ 100 Extension, New Cairo
Consortium of Hassan Allam Construction (HAC) & Consolidated Contractors Company (CCC) Wins Construction Tender NEWS
Source: Developers’ Official Statements
16 February 2021 MARKET WATCH
ÉCLAT N P
LOCATION AREA NO. OF RESIDENTIAL UNITS UNIT AREAS Port Said 38 a 350 70-450 2 C 40,000 2
NEWS PLAN Phase I Sold Out in 3 Days (Out of 4 Phases) New Plan Intends for 2nd Project S 18 M in Port Said
AZZAR r
LOCATION AREA NO. OF RESIDENTIAL UNITS TOTAL INVESTMENTS New Cairo 25 a 152 EGP 1 bn 2 P (Additional EGP 500 mn in 2021)
Reedy to Start Handing Over Phase I, Thereby Delivering 70% of Total Units C 1 Y a S NEWS P O C C 11,000 2 L a 2021
HEARTWORK M
LOCATION AREA TOTAL INVESTMENTS DELIVERY DATE NEWS Plans to Commence iCity, New Cairo 500 a EGP 3.3 bn Before 2022 Work in Q1 2021
Source: Developers’ Official Statements
17 February 2021 MARKET WATCH
ZED WEST O
No. of Residential Units 4,500 (6 Phases)
Ora Developers Gets EGP 2.5 bn Loan From Banque Misr, Emirates NBD, Export Development Bank & Housing and Development Bank
NEWS Target: F e C
M I P MIP
MIP Logs EGP 2 bn in Sales of Mixed-Use Units at 5 Property Projects NEWS
IL BOSCO
LOCATION AREA TOTAL INVESTMENTS NO. OF RESIDENTIAL UNITS STATUS NAC 207 a EGP 16 bn 5,100 MIP Starts Deliveries Ahead of Schedule (Concrete Buildings of 300 Villas & 2,500 Apartments Complete)
VINCI
LOCATION AREA TOTAL INVESTMENTS NO. OF RESIDENTIAL UNITS STATUS NAC 110 a EGP 8 bn 1,500 Units & 600 Villas Construction is in Full Swing for Delivery in 2022
Source: Developers’ Official Statements
18 February 2021 MARKET WATCH
CAIRO BUSINESS PARK
LOCATION AREA TOTAL INVESTMENTS New Cairo 78,000 2 EGP 500 mn
MIP Delivers 20 Out of 42 Administrative Buildings MIP Posts EGP 200 mn in Sales of Allure Executive Offices STATUS
LA NUOVA VISTA
LOCATION AREA NO. OF RESIDENTIAL UNITS STATUS New Cairo 41 a 131 MIP Handovers 20 Residences
GARDEN 8
LOCATION AREA TOTAL INVESTMENTS STATUS 2 Plans for EGP mn La Nuova Vista, New Cairo 22,000 EGP 500 mn 100 Additional Investments Before 2022
KAI SOKHNA
LOCATION AREA TOTAL INVESTMENTS No. of Hotel Keys Ain Sokhna 35 a EGP 2.4 bn 200
Delivery of Phase I in Q4 2020
Hilton Ain Sokhna Hotel to Open in STATUS 2024
Source: Developers’ Official Statements
19 February 2021 ECONOMIC SNAPSHOT MARKET WATCH
ECONOMIC SNAPSHOT
GLOBAL ECONOMIC GROWTH RATE
ANNUAL HEADLINE INFLATION
NO eMBer 5.7% eCeMBer 5.4% 2 2020 1 2020
-12.3 -2.3 NET INTERNATIONAL RESERVES (USD BN)
eCeMBer NO eMBer 39.22 40.06
eCO O IC rO ra e OF aDVa CeD eCO O Ie PURCHASING MANAGERS' INDEX (PMI)
NO eMBer 2020 2 2020 1 2020 201 50.9 eCeMBer -3.5% -10.3% -1.7% 0.8% 48.2
eCO O IC rO ra e OF e er I eCO O Ie $ £ € EXCHANGE RATES
2 2020 1 2020 201 BP uS eur
-2% -0.6% 1.3% 19.07 19.21 19.24 19.33 19.35
15.75 15.78 15.75 15.79 15.77
CONTRACTION IN GLOBAL TRADE 21.02 21.20 21.17 21.41 21.53 0 10 1 1 20 2 2 1 0 0
-4.2 2020 -14.4 2 2020
-3.1 1 2020 -0.5 2019 CAPITAL MARKET INDICATORS
e 0 e 0 e I e 100 e I
EGYPT'S REAL GDP GROWTH RATE 10,987 10,952 10,845 10,845 10,684
1 ST 19 9 / M % 8 5.4 2 1 0 0 1 3,125 2 9 3,040 3,001 2,974 3,098
/ Y 2,093 2,056 2,145 2,153 2 2,066
F 5.6% 0
F Y 2 10 eC 1 eC 2 eC 1 eC 0 aN 019/20 3.6%
S C B e CBe C a P M S CaPMaS IHS M e
21 February 2021 MARKET WATCH
CURRENT ACCOUNT DEFICIT (USD BN) FITCH SOLUTIONS DOWNGRADES PROJECTIONS FOR EGYPT'S GDP GRWOTH RATE FY 2018/19 FY 2019/20
10.9 11.2 P r F 3 Down from 3.2% in December
e P r MeNa 3.4
TRADE BALANCE (USD BN) T P 2021 FY 201 1 FY 201 20 38 3.9% 36.5 EGYPT'S CREDIT PROFILE AT MOODY'S
TRADE DEFICIT (USD BN) Credit Profile 4.1 2.9 B2 Stable
28.8% SUEZ CANAL REVENUES (USD BN) OCT 201 2020 201 2020 EXPORTS uS BN 5.8 3% 5.6 October 2019 October 2020 2.5 13.1% 2.2
IMPORTS uS BN T P T C
October 2020 1.17 bn ons 22.8% 2019 5.1 October 2020 6.6 N P S 18,000
S CBe CaPMaS F S M I S S C a
22 February 2021 FULL ANALYSIS FACTS & FIGURES MARKET WATCH
FULL ANALYSIS FACTS & FIGURES
2020 CITES TRIUMPHS FOR EGYPT’S PROPERTY SECTOR AMID HEALTH CRISIS BY DINA EL BEHIRY
n the second month of the new year, it is important to look back at 2020, which was seen as a successful year for Egypt despite the global repercussions due to the ongoing COVID-19 hit. For the real estate industry, in particular, market players demonstrated the core values of I excellence in doing business amidst crisis.
For starters, the government is forging ahead with its strategic With an eye on the development of Upper Egypt, which comes in line urban development plans. In 2020, around 103,000 housing units with Egypt Vision 2030, almost EGP 63 bn have been directed to the have been implemented across various new cities, with combined urbanization of Upper Egypt’s governorates from 2014 to 2020, El Gazzar investments of EGP 23.46 bn, Minister of Housing, Utilities, and Urban noted. Communities Assem El Gazzar confirmed in an official statement last December. Accordingly, a total of 167,761 housing units have been established across an area of 94 acres. That is besides the construction of 931 kilometers of The breakdown is as follows: 50,000 homes as part of the “Residence for highways and internal roads in the new cities of Upper Egypt, paired with All Egyptians” initiative, in addition to 33,300 and 5,300 middle-income 271 utility projects and 412 service buildings. and distinguished housing properties, respectively. The development of Upper Egypt, according to El Gazzar, is being carried That is besides 13,300 alternative housing for slum dwellers and 416 out over three phases. Phase I is the development of existing cities, Bedouin settlements, paired with 383 residences as part of the Nubian whereas the second one includes the implementation of various projects housing rehabilitation projects, El Gazzar continued as he exhibited the across eight new cities. Subsequently, phase III covers the implementation Ministry of Housing’s 2020 achievements. of more developments in six other fourth-generation cities.
In regards to local infrastructure development, 43 potable water On the other end of the spectrum, Egypt’s Minister of Planning and projects have been carried out nationwide last year, with investments Economic Development Hala El Saeed has revealed the execution of worth EGP 5.4 bn, accommodating a capacity of 447,000 cubic meters 416 public developments in the electricity and renewable energy sector, per day. valued at EGP 95.6 bn, over the past two fiscal years.
A special focus was also put on rural sanitation, with 148 wastewater In FY 2019/20, Egypt had set up 194 energy projects, with investments treatment projects built at a total cost of EGP 5.1 bn in 2020. As for urban estimated at EGP 33.6 bn, El Saeed officially indicated last December, cities, at least 42 sewerage plants were set up during the same period, highlighting that Cairo topped all governorates with about 60 with investments worth EGP 6.6. bn, providing a capacity of 515.5 cubic developments worth EGP 7.5 bn. meters per day. Aswan ranks second with 36 electricity projects, at a combined cost of Further, 24 road projects across the country, extending over 243.4 EGP 3.7 bn, followed by Assiut and the Red Sea provinces with 23 and kilometers in length, have been finalized, a total cost of EGP 3.1 bn, with 22 developments, respectively, valued at EGP 9.2 bn and EGP 9.1 bn, more in store for 2021, El Gazzar highlighted. separately, the minister further stated.
The minister also underlined that numerous development projects have Merely 118 projects have been established in Upper Egypt governorates, been executed across several governorates. In FY 2020/21, Sinai saw the at a total cost of almost EGP 19 bn, in addition to 35 others in the border implementation of multiple development projects with costs estimated governorates for EGP 14.8 bn, she continued. at EGP 19.23 bn. That is besides another 21 projects in Alexandria for EGP 1.4 bn, paired Three seawater desalination plants have been established in Arish, at a with 16 others in Beheira at an investment cost of EGP 3.5 bn. Meanwhile, combined capacity of 20,000 cubic meters per day, and a total cost of 13 energy projects have been carried out in each of Giza and Sohag with EGP 349 mn, he continued. investments of about EGP 8.1 bn and EGP 4 bn, respectively.
24 February 2021 MARKET WATCH
Meanwhile, Damietta saw 10 electricity developments at a total value of Private Real Estate Updates EGP 4.2 bn, whereas nine others have been implemented in Beni Suef for approximately EGP 1.6 bn, El Saeed added. When it comes to the private real estate segment, it is worth stressing that developers successfully managed to overcome the pandemic woes. Bidding to underpin the urbanization of Egypt’s new cities, the Board of In fact, several Egyptian real estate companies made headway when it Directors of the New Urban Communities Authority (NUCA) has allocated comes to in-progress property projects across the country. 33 land plots in 14 new cities for various activities, in the efforts to increase development rates, accelerate investment in new cities, and provide job Some others also managed to roll out new developments despite the opportunities. Coronavirus headwinds. Eastern Real Estate, for example, has announced plans to launch a new project in west Cairo’s Sheikh Zayed in January, Speaking of new cities, around 6,504 housing units (271 buildings) have dubbed “Genova.” been implemented at the New Mansoura’s JANNA luxury housing project and are scheduled for delivery in June 2021. Better yet, additional 4,728 Planning to begin work on-site during the current year, Eastern Real residential properties (197 buildings) are underway on-site, according to Estate intends to pump investments of EGP 3 bn into its newest 20-acre Mohamed Ragab, head of the New Damietta Development Authority. gated community, with about EGP 100 mn allocated to construction costs only. Beyond that, about 4,704 housing units (196 buildings) are under construction in the new city’s Sakan Misr project and are set for Genova will offer 768 residential properties of different unit areas, ranging completion by next March. New Mansoura will also see a service center, from 126 to 220 square meters. Residents will embrace services such as a which is almost 93% done. health club, social club, on top of an 8,000-square-meter cultural center.
Looking at New Cairo, Vice President of NUCA Abdulmutallab Mamdouh AlKarma Developments has rolled out its latest project in Sheikh Zayed has inspected work on phase II of New Cairo’s Dar Misr middle-income as well, called “AlKarma Gates.” The 1.8 bn residential project spans over housing project, affirming that 1,625 apartments (69 residential buildings) 36 acres, with a built-up area of 13.5%. are set for delivery starting from January 2021. With plans for completion by 2024, AlKarma Gates features 180 residential Upon completion, phase II of New Cairo’s Dar Misr middle-income housing units, varying between standalone villas, townhouses, and twin houses. project will incorporate a total of 376 residential buildings, Mamdouh further stated during a tour accompanied by several ministerial officials Additionally, Sixth of October Development and Investment Company in December. (SODIC) has successfully sold out the first batch of residential units at its newly launched project, dubbed “Karmell,” on the first day of launch. Another 1,512 residences (63 buildings) at New Cairo’s JANNA luxury housing project are scheduled for handover as of next January, with The 240-acre project will comprise in its first phase several contemporary plans to launch 87 more buildings soon, he underlined, stressing that the residential buildings, including fully-finished double-floor houses, with development will boast a total of 365 residential buildings once finished. modern floating stairs to bridge the vertical distance. That is besides some affordable villas designed to comprise private quarters for parents/ According to the vice president, in February 2021, the delivery of 2,256 couples and garden rooms. residential properties (94 out of 148 buildings) as part of New Cairo’s Sakan Misr middle-income project will start. Badreldin Developments is on the verge to launch a new phase of its 100-acre residential compound in west Cairo’s Sheikh Zayed, The officials also inspected lands at Beit Al Watan project in Al Narges dubbed “Kayan,” with plans to begin deliveries in 2022. With a built- Extension. At present, 2,600 fully-equipped plots are being handed over up area of 200,000 square meters, the mixed-use project features in New Cairo’s Third Settlement, as part of the project designated for a total of 1,600 semi- and fully-finished residences, ranging from Egyptian expats, Mamdouh revealed. 60 to 180 m2.
In parallel, deliveries at a diverse range of new cities are in full swing Looking at the commercial side, Omar Abdullah Developments (OAD), in starting from January 2021. In the New Administrative Capital (NAC), for partnership with the Ministry of Youth and Sports, has launched NAMMA, example, the housing ministry plans to deliver several housing units in one of the largest integrated service complexes in 6th of October City. Capital Residence, located in R3 District, from January 3 to July 5. The 250 mn project spans over 8,000 square meters, with a built-up area Homes in D1 and D8 neighborhoods will be handed over to beneficiaries of 15,000 square meters. NAMMA is a three-story medical, commercial, over the next six to seven months. This comes in line with the state’s and administrative complex that encompasses multi-purpose shops, endeavors to inaugurate the new capital before next summer, Vice restaurants, cafes, banks, outpatient clinics, together with three celebration President of NUCA for Commercial and Real Estate Affairs Mohamed halls and a motel. Anwar Hilal recently announced. IC Group has commenced the handover of its 4,800-square-meter Meanwhile, President Abdel-Fattah El-Sisi directs for continuing the commercial project in New Cairo, or “Life Mall,” in a bid for official opening “Residence for all Egyptians” initiative, which aims at offering decent and operation in Q1 2021. housing for all low- and middle-income earners nationwide, on top of slum residents. Developed with costs estimated at EGP 600 mn, the two-story complex consists of 140 commercial units and more than 70 warehouses. Properties On his part, El Gazzar has emphasized the need for adherence to are currently being delivered to 180 customers. Moreover, IC Group has deadlines and continuous follow-up on the construction of housing contracted with a shopping center management company to handle units coming as part of the large-scale move. the overall operation and maintenance of the entire facility.
The national project will cover East Port Said and New Aswan, as well as Capital Link Developments has confirmed plans to introduce its second west Cairo’s New October and October Gardens, while catering to other real estate project in NAC, named “Dorado,” with investments estimated areas across the country in the short run, the minister explained. at EGP 200 mn.
25 February 2021 MARKET WATCH
Extending over an area of 2,216 square meters, the 10-story mixed- Vegetable prices have dropped by 10.1%; seafood by 0.6%; meat and use complex will comprise a total of 174 medical, commercial, and poultry by 0.2%; milk, cheese, eggs by 0.1%, and ready-made garments administrative properties, with unit areas ranging from 24 square by 0.6%. meters. On the other hand, a number of other products’ prices saw a rise in SODIC has partnered with the largest office furniture and interior/exterior December, including fruits by 3.8%; oil and fats by 0.5%; grains and bread systems manufacturer in the Middle East, Mobica, to bring a new office by 0.2%; and transport services by 0.7%. concept and an innovative lease solution for small- and medium-sized enterprises (SMEs). Meanwhile, monthly inflation in urban areas witnessed a slowdown by 0.4%, reaching its lowest level in 18 months, after having expanded by Under the agreement, this plug-and-play concept, dubbed “Work-Plex,” 0.8% in November. entails offering offices and administrative units built and fully-finished by SODIC, yet fully furnished with Egypt-based Mobica’s quality furniture, Speaking of the non-oil business activity, according to IHS Markit, the year- all on a lease basis. end witnessed a major slowdown in the non-oil market. That is why the Purchasing Managers’ Index (PMI) shrank to 48.2 versus 50.9 in November. It will make its debut at “The Portal Business Park” in SODIC West, which covers over 30,000 m2 of Class A workspaces, and is planned to be offered That was on the back of the rise in the COVID-19 cases in Egypt, which across all SODIC commercial projects at a later stage. raised the fears of the virus second wave.
It is worth highlighting that Hawai Tourism and Investment Company has Accordingly, several companies postponed their activities and initiated the announced the launch of Cairo Eye. Scheduled to open in 2022, the well- wait-and-see mode. On the other hand, the market was quite optimistic, thought-out project comes in line with El-Sisi’s directions for additional especially after various countries worldwide began the distribution of tourism and investment developments. the Coronavirus vaccine.
Overlooking the Nile River in a premium location in Zamalek, Cairo Eye With an eye on major macroeconomic indicators, the Central Bank of will be the first touristic wheel in the capital and the largest of its kind in Egypt (CBE) has released some worldwide updates (until November 30, Africa, at a height of 120 meters long. It will be a global and a landmark 2020). According to the monetary policy report, the global economy for modern Cairo, in line with Egypt Vision 2030. witnessed a severe contradiction in Q2 2020, logging -12.3% versus -2.3% in the previous quarter. This is considered as the first global economic It will also stand as the fifth-largest wheel after London, Dubai, Las Vegas, contradiction since Q3 2009. and Singapore. Looking at the Egyptian GDP real growth rate, it slowed down in FY 2019/20 Cairo Eye will allow visitors to see the city for a distance of 50 kilometers registering 3.6% after the 5.4% seen in the first nine months of the same and the landmarks surrounding it. It will contain 48 cabins with a fiscal year. This happened mainly because of the imposed precautionary capacity of six to eight visitors per cabin, aiming to welcome 2.5 mn measures to combat the virus outbreak, especially during Q2 2020. visitors annually. Looking in eyes of international institutions, Fitch Solutions has downgraded its projections for Egypt’s real GDP growth for the second Economic Snapshot time in two months to reach 3% in 2021, down from the 3.2% that in December 2020, expecting the country to achieve 4% economic growth Even though it looks like Egypt is still in the battle to combat the second over the next three years. wave of the COVID-19-induced slump, the North African country seems to be winning the fight and adapting to the current severe, challenging This came within Fitch Solutions’ MENA macroeconomic update, market conditions. released on January 11. It showed that Egypt was the only country that had witnessed positive growth in 2020, estimated at 3.5%. With intense efforts showing some promising results, net international reserves hit their highest level since last April, recording more than USD Unlike the International Monetary Fund’s (IMF) expectations for Egypt 40 bn in December versus USD 39.2 bn in November. to be the only country to see positive growth in 2021, Fitch Solutions’ insights showed that Egypt is among ten other countries to see positive The USD 800 mn surge is seen as the highest monthly increase in 2020, growth over the year. which comes in the back of the furnishing of foreign reserves after losing around USD 10 bn between March-May. Despite this upsurge, the net Moreover, Egypt is likely to rank among the strongest growth rates international reserves are still below the recorded level in last February regionally, as its economy benefits from a relatively early vaccine roll- of USD 45.5 bn. out, and activity is boosted by government investment in construction, information and communications technology, and transport projects, in Egypt’s annual inflation headline declines to its lowest since October addition to rising export demand from Europe, according to Fitch insights. reaching 5.4% in December, down from 5.7% in November, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced on It also added that moderate inflation and falling interest rates further helps January 10. to facilitate upticks in private investment and consumption.
In November, CAPMAS announced that the annual inflation rate rose to Accordingly, Egypt is still on the right side of the track whether in 6.3%, up from 2.7% in November 2019. combating the Coronavirus havoc or even when it comes to the efforts exerted to continue doing business and adapting to the new normal.
26 February 2021